2026.05.2815:33:42UTC+00Dollar Index Edges Down to 99

The dollar index slipped to 99 on Thursday, pulling back from intraday highs near 99.5, after Axios reported that the US and Iran had reached a deal to extend the ceasefire, pending approval from President Donald Trump. The greenback was already under pressure following the latest PCE report, which revealed softer-than-expected inflation. Headline and core PCE increased by 0.4% and 0.2% month-on-month, respectively, though annual inflation remained well above the Federal Reserve’s 2% target at 3.8% and 3.3%. This data helped ease fears that the recent energy shock would substantially worsen the inflation outlook. Even so, market volatility and uncertainty are likely to persist, as conflicting signals have emerged in recent days and traders continue to wait for definitive confirmation of a durable end to the conflict and a full reopening of the Strait of Hormuz.